The Economy of Hungary
Orbán's 'Unorthodox' Economic Policy
After 2010, the government imposed special taxes on banks, energy and retail, nationalised some assets and introduced a flat income tax.
Policy off the usual path.
Special taxes
Extra levies on banks, telecoms, retail and energy firms.
Flat tax
A single personal income tax rate of 15 per cent from 2011.
Pension funds
Private pension savings were transferred to the state.
Debate
Supporters credit deficit reduction and sovereignty; critics cite investor uncertainty and cronyism.
A bank levy
Banks paid a special tax on their assets to help balance the budget.
Judging policy only by ideology
Look at results and side effects.
Key takeaways
- Special taxes hit some sectors.
- A flat income tax was introduced.
- Pension assets moved to the state.
- The record is debated.
No recording for this one yet - EconReader can read it aloud for you.